Click on the PDF link for the complete article.
ABSTRACT
This study focuses on the effects of news and advertising expenditures on corporate reputation. Both advertisement expenditures and the tone (or tenor) of business news exert a positive influence on corporate reputation. In addition, advertising expenditures were found to magnify the effects of the tone of the news. In particular, moderately educated customers are susceptible to the tone of the news. These research results follow from a repeated yearly survey regarding the corporate reputation of 10 focal companies, and from advertising expenditures and a daily content analysis of the tone of the news in the media used by the respondents. Because advertisements magnify the effects of negative news, negative news renders advertisements unfit, especially for moderately informed consumers. The research results suggest that advertisers should wait for a storm of negative news to subside before advertising. They may monitor word of mouth to anticipate such a storm.
- © Copyright 2007 The ARF. All rights reserved.
ARF MEMBERS
If you are a member of the Advertising Research Foundation, you can access the content by logging in here
Log In
Pay Per Article - You may access this article (from the computer you are currently using) for 30 days for US$20.00
Regain Access - You can regain access to a recent Pay per Article purchase if your access period has not yet expired.
